(Reuters) – California Public Employees Retirement System (CalPERS) CEO Marcie Frost plans to oppose Tesla CEO Elon Musk’s $56 billion pay package, CNBC reported on Wednesday.
“We don’t think compensation is commensurate with company performance,” Frost said in an interview with CNBC.
Asked if the pension fund had been “duped” when it supported the proposal in 2018, Frost said no. “We used the information we had and made the best choice.”
CalPERS is among Tesla’s top 30 investors and owns 9.5 million shares, according to LSEG data. The U.S. pension fund did not immediately respond to a Reuters request for comment.
In a post on X, Musk responded by saying that the US pension fund had “broken the deal.” “What she is saying makes no sense because all contractual steps have been followed. CalPERS does not keep its word,” he wrote in his message.
Proxy consultancy Glass Lewis had urged Tesla shareholders on Saturday to reject the pay package.
Elon Musk’s pay package, the largest among U.S. companies, has no salary or cash bonus and sets rewards based on Tesla’s market value of up to $650 billion over the next 10 years starting in 2018 .
A Delaware judge rejected the offer in January after calling the compensation an “unfathomable sum” and unfair to shareholders.
Last month, Tesla asked shareholders to reaffirm their approval of Musk’s salary plan set in 2018.
(Reporting by Harshita Mary Varghese and Niket Nishant)
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